Two Calgary Co-op stores in the northwest part of the city are set to close by the end of March, as the retailer cites challenging economic and market conditions for this decision. The closure will affect the food stores located in Sage Hill at 111 Sage Valley Common N.W. and in Hamptons at 1000 Hamptons Dr. N.W., along with the Calgary Co-op liquor and cannabis stores in the Hamptons area.
The company spokesperson mentioned in a statement that although the closure of food store locations is not desired, it is essential to align with the needs of members and focus on profitable ventures. By shutting down these stores, Calgary Co-op aims to concentrate on other sustainable locations, such as the upcoming North Hill store expected to open early this year and a planned store in Marda Loop for the following year.
The Sage Hill store, which marked Calgary Co-op’s 65th anniversary in 2021, holds sentimental value for many customers who expressed disappointment upon hearing the news. Some regular shoppers, like Gord Courage and Leslie Jilkes, shared their attachment to these stores and their concern about having to travel farther to reach alternative Co-op locations like the one in Creekside.
Market experts, including retail analyst Bruce Winder, attribute the closures to increased competition in the grocery sector, with retail giants like Walmart and Costco gaining a larger market share. The trend towards discount options, such as No Frills and FreshCo, has also impacted traditional grocers like Calgary Co-op.
Calgary Co-op, known as one of the largest retail co-operatives in North America with over 400,000 members, reported a $10 million loss in 2024 compared to previous years’ earnings. Despite the financial challenges, the company paid out $17 million in patronage payments in 2024 as part of its co-operative model.
Observers, like Marc-André Pigeon from the Canadian Centre for the Study of Co-operatives, express concerns about Calgary Co-op’s financial performance and strategic direction, especially with recent expansions into new markets and industries. The company’s decision to part ways with Federated Co-operatives and collaborate with Save-On-Foods as a grocery supplier indicates a shift in its operational approach.
Calgary Co-op assured that it is working with the union and affected employees at the closing Sage Hill and Hamptons locations to provide necessary support during the transition period.
